Russia’s largest bank, state-controlled Sberbank (Sber), posted RUB117bn net profit in 11M24 under Russian Accounting Standards (RAS) and RUB1.4 trillion for 11M24 overall, making a return on equity (ROE) of 21% and 24% respectively.

Sber maintained high profitability metrics despite a notable slowdown in the loan portfolio growth to 1.7% month on month in November (+17.4% year to date). 

The slowdown is in line with the overall banking sector trend and was observed in both retail (+0.5% m/m) and corporate segments (+2.4 m/m), with currency-adjusted growth in the latter more restrained (+1% m/m). 

Deposits grew by 3.8% m/m (+20.9% year to date), with corporate clients being the key source of inflow (+9.2% m/m). 

Renaissance Capital analysts expect Sberbank's IFRS net profit in 2024 to come around RUB1.6 trillion, which corresponds to a dividend of RUB35 per ordinary share (around 15% dividend yield to current share price).

As followed by bne IntelliNews, at the Investor Day held on December 6, Sberbank confirmed its dividend policy for 2025, which would mean paying 50% of 2024 IFRS net profit in dividends.

To remind, Sber, under full blocking sanctions, did not pay the RUB623bn dividend for 2021 amid the fallout from Russia’s full-scale military invasion of Ukraine.

But the bank surprised with the record-breaking total dividend payout of RUB565bn ($7.3bn) in 2022, making more than double the RUB271bn net profit the bank earned last year. The largest recipient of the dividend, at RUB282.5bn, was the state (50% plus one share in Sberbank).

Sber then paid another record-high RUB752bn ($8.5bn) dividend for 2023, or RUB33.3 per ordinary and one preferred share (10.6% yield for both). According to the latest reports, Russia's budget revenues from dividends of Sber in 2025 are planned at RUB375bn ($4bn).

The state, represented by the National Welfare Fund, owns 50% plus one share in Sberbank. Thus the total amount of dividends that can be paid by the bank in 2025 could amount to RUB750bn, or 50% of the IFRS net profit of RUB1.5 trillion according to the bank’s dividend policy.